Speaker: Sharing on Digital Transformation of Guanxi Electronics' Indonesian Plant - Special Assistant Yan Cijun, Guanxi Electronics Group (Indonesia Development Zone)

Amid the wave of supply chain restructuring in Southeast Asia, many Taiwanese businesses face challenges such as operating in multiple locations, engaging in diversified trade, and increasing the complexity of local production. As a Taiwanese listed company with 18 years of experience in the Indonesian market, OSMO Electronics' digital transformation experience is undoubtedly a valuable practical guide for all manufacturing companies in Indonesia.

At the Indonesian physical seminar hosted by Dingxin Digital Intelligence, Yan Cijun, Special Assistant of the Indonesian Development Zone of Guanxi Group , shared his rich practical experience on how Guanxi Electronics' Indonesian plant successfully resolved many pain points in group management, cross-regional collaboration, and complex manufacturing through a powerful and locally adaptable ERP system.

I. "Information Silos" in Cross-Regional Operations: Assistant Yan Reveals Three Major Challenges in Group Management

Guanxi Electronics Group primarily engages in the post-processing of electronic components, and also has factories and industrial parks in Indonesia. Its business spans across mainland China, Taiwan, and Hong Kong, forming a complex multi-faceted trade and allocation model. In her presentation, Assistant Yan Cijun pointed out that before implementing a digital platform, the company encountered three core management challenges:

Challenge 1: Inconsistency between manual order entry and data processing within the group

Yen Tzu-Chun's assistant emphasized: "When a group relies on manual invoicing to process orders, purchases, and transfers, the most fatal problem is 'inconsistency'."

Manual operations between the group headquarters, various marketing centers, and factories resulted in inconsistencies in part numbers, BOMs, order processing, and purchasing data. This not only caused chaos in daily operations but also severely impacted subsequent financial statement consolidation , making it difficult for the group to accurately grasp the operational status and true profits of various locations from a macro perspective.

Challenge 2: The Tracking Dilemma of Multi-Corner Trade Across Mainland China, Taiwan, and Hong Kong

The Guanxi Group's business model involves complex processes such as order allocation between its US marketing center , Taiwan headquarters , China marketing center , and factories in various locations , as well as the transfer of goods from factories and distributors, and multi-party procurement. The logistics and payment tracking of this multi-party trade is extremely difficult, and traditional paper or Excel collaboration methods are simply ineffective in connecting the various processes, creating potential operational risks.

Challenge 3: Imbalance between inventory and procurement control

The lack of timeliness and accuracy in information makes it impossible for procurement to accurately predict demand and inventory levels to be effectively controlled, resulting in a dilemma of material backlog or emergency material shortage , which directly impacts production plans and costs.

II. Digital Platform: Guanxi Electronics' "Strategic Transformation" Practice in Indonesia

Faced with the above challenges, Guanxi Electronics' Indonesian plant chose to implement Dingxin Digital's ERP system, using a digital platform as a strategic tool to solve the pain points of group and factory management.

Breakthrough Point 1: Establish a unified digital backbone for the entire group

Assistant Yan shared that the core value of the new system lies in unifying the group's data language :

• Part Number and BOM Consistency: The system enforces a single version control for part numbers and BOM (Bill of Materials), solving the problem of information asymmetry in various stages of the group from the source.
• Automatic consolidation of financial statements: Through a unified data platform, cross-regional financial statement consolidation is automated and accurate, greatly improving the timeliness and reliability of group decision-making.
• Transparency in multilateral trade: The system can clearly connect and track the order, transfer, procurement and sales return processes in multilateral trade, and the logistics and cash flow status is clear at a glance.

Breakthrough Point 2: Solving the "Soft Flexibility" Problem in Complex Manufacturing

As an electronic component manufacturer, Guanxi faces challenges related to high customization and complex product attributes. Assistant Yan specifically pointed out that the most difficult problems on the production floor are precisely the key to the successful resolution of the ERP system:

"Our products are diverse, and we often face the need for 'component and main component replacement materials', as well as frequent changes in BOM versions. Without system support, the complexity of issuing and returning materials would cause on-site management to collapse."

Dingxin Digital's ERP digital platform provides:

1. Flexible material issuance mechanism: The system can support complex material issuance and return logic for multi-attribute products, and allows setting alternative materials for components and main parts, ensuring that the production line can still respond quickly and remain flexible when there is a shortage of materials.
2. Strict BOM version control: Effectively control the BOM version to ensure the accuracy and consistency of data in the work order dispatch, reporting, and completion process, and avoid production errors caused by version errors.

III. Conclusion: Digitalization is the cornerstone of the sustainable development of Taiwanese businesses in Indonesia.

Yan Cijun's special assistant's sharing not only showed how Guanxi Electronics' Indonesian plant successfully overcame the growing pains of the early stages of digital transformation, but also proved that in Indonesia's complex business environment, choosing a digital platform that can take into account both the group's macro-management and the factory's micro-production is crucial.

Assistant Yen summarized: Digital transformation has enabled Kuan Hsi Electronics' operations in Indonesia to shift from "traditional manual risks" to "data resilience," ensuring the group maintains a strong competitive edge in the rapidly growing Southeast Asian market. For all Taiwanese businesses already in Indonesia, or those planning to invest and set up factories there, Kuan Hsi Electronics' experience sends a strong signal: digitalization is not an option, but the cornerstone of sustainable operation.

We sincerely invite you to consult with the Dingxin Southeast Asia team to learn from their successful experiences and build a solid digital platform for your Indonesian operations.